An Australian court upheld a decision on Friday, requiring Elon Musk's X (formerly Twitter) to pay a fine of A$610,500 ($418,000).
As per multiple outlets, this comes for not cooperating with a regulator's request regarding anti-child-abuse measures.
Although X contested the fine, but the Federal Court of Australia ruled that the company was required to respond to a notice from the eSafety Commissioner, which is responsible for internet safety.
This notice sought information about how X addresses child sexual exploitation material on its platform.
The company argued it was not obligated to respond to the notice because it had merged into a new entity controlled by Musk, which they claimed removed its liability.
eSafety Commissioner Julie Inman Grant stated, "Had X Corp's argument been accepted by the Court it could have set the concerning precedent that a foreign company's merger with another foreign company might enable it to avoid regulatory obligations in Australia."
This isn’t Musk's first dispute with the Australian internet safety regulator.
Earlier this year, the eSafety Commissioner ordered X to remove posts showing a bishop being stabbed during a sermon in Australia.